l understand the difference between normal, inferior, and Giffen goods; l provide a comparative evaluation of the two competing theories. 5.1 INTRODUCTIONIn the previous unit we have introduced the concept of demand function, various determinants of demand and its elasticity. In this unit, we continue the discussion on demand and focus our attention on consumer’s behaviour in order to explain the law of demand. The law of demand says that when price of a commodity is lowered a larger quantity is demanded, and when price rises a smaller quantity is demanded, other things remaining the same. In other words, the law states that price and quantity demanded are inversely related. In this unit we will introduce you two contending theories - Alfred Marshall’s cardinal utility theory of demand, and J.R. Hick’s and R.G.D. Allen’s preference approach (or the indifference curve theory, or the ordinal utility theory) of consumer behaviour.

In Hicks-Allen approach some of the restrictive assumptions of the Marshallian approach are dropped. Particularly, that utility is a cardinal concept and is measurable on a numerical scale with an absolute zero and that marginal utility of money is constant are relaxed. Marshallian theory is also based on the law of diminishing marginal utility as well as on inter-personal comparisons of utility. In the preference approach these limitations are overcome with the help of Hicks-Allen formulation, which is based on the indifference curve technique. We will first develop the properties of indifference curves. Using the indifference curves and in conjunction with prices of goods and the consumer’s money income (or budget) we will be showing how a rational consumer attains equilibrium.

Since consumer’s choice depends on prices and money income, and as prices change or money income changes, the consumer’s equilibrium choice will also change. We explain how to derive the price-consumption curve and the income-consumption curve. We will then show how the demand curve for a good can be derived from the price consumption curve. This part of the discussion ends by pointing out the difference among normal good, inferior good and Giffen good. It is only in the case of Giffen good that the law of demand is violated and the demand curve for a good is upward sloping rather than downward sloping. The law of...

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‘Shylock was justified in taking revenge on Antonio.’
Do you agree?
In ‘The Merchant of Venice’ by William Shakespeare, Shylock the Jew is portrayed as the antagonist of the story. Cunning, vengeful and cruel are words you may use to describe this malicious character, but does he really deserve this reputation?
Upon the mention of Shylock, the saying ‘Never judge a book by its cover’ comes to mind. Though Shylock is seen as a cruel and spiteful character, if one takes the time to seriously analyze the story, you will find that Shylock’s behavior is not without reason.
Under the circumstances that had befallen him, it is relatively normal that Shylock would wish to seek revenge towards Antonio, seeing as Antonio had not treated Shylock amiably in the past, calling him ‘cut throat dog’ and even going as far as to spitting on his Jewish robes. But Shylock did take the whole ‘revenge’ factor a little too far, and most, if not all people would agree that his desire for revenge should not be justified.
However, there are always two sides to every story, and I believe that in this case, not many people take Shylock’s side of the story into enough consideration. I believe that if one takes the time to analyze the situation thoroughly without showing favor for either sides, you will realize that Shylock has not made any unfair demands towards Antonio.
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...A play I have studied is The Merchant of Venice. Two characters in the play who have a tense relationship are Shylock and Antonio.
This tension stems firstly from religious differences. In Venice at this time the Christians looked down on the Jewish people because of their religion. Shylock cannot understand the hatred of the Jewish people on Antonio and the rest of the Christians part. Antonio treats Shylock like a dog and he even admits in the text Shylock: ‘Fair sir, you spat on me on Wednesday last, You spurn me such a day, another time You call’d me a dog: and for these courtesies I’ll lend you thus much moneys’? Antonio: ‘I am like to call thee so again. To spit on thee again, to spurn thee too. If thou wilt lend this money, lend it not as to thy friends, for when did friendship take A breed for barren metal of his friend? But lend it raher tho thine enemy, who if he break thou may’st with better face exct the penalty’. This shows that even after Shylock lends him the money he will not be any way different or kind to him he will just go back to the same thing of spitting on him and calling him a dog. I think that Shylock was trying to make friends with Antonio but he would not become his friends because of Shylocks religion.
A second reason for the tense relationship is a difference of opinion in the matter of business. Shylock makes a living n lending out money to people for a certain lent of time and then if it...

...Will Bullock
12/7/12
Period 5
Gambling with Love
In life, gambling can appear in several different forms. You can gamble money or items, and in some cases things much more important. In the play The Merchant of Venice by William Shakespeare, gambling appears in the form of money, marriage, physical life, and a soul. These different wagers are used to represent debt, loss, and greed, but Shakespeare also associates gambling with love. Gambling is usually not linked with the word love, however, in The Merchant of Venice, gambling takes a certain form of love. Gambling acts like a measure for ones love and you can base you love of the kind of gamble that you make. Shakespeare uses these several different types of gambling to show the limits of one’s love because in The Merchant of Venice, value of a gamble reflects the amount of one’s love and trust.
Risking your marriage is a gamble in The Merchant of Venice that Bassanio and the two princes take to express their love for Portia. In order to marry Portia a suitor needs to guess the correct of three caskets, however, if he guesses incorrectly he will never be able to marry anyone for the rest of his life. Essentially, when someone decides to pick one of the caskets they are putting not only their chance at marriage with Portia on the line, but also just their chance at marriage in general. Bassanio, the...